There are currently different rates of national minimum wage (NMW) for four categories of worker:
- Standard adult rate. This rate applies to workers aged 21 or over (there is no upper age limit).
- Development rate. This rate applies to workers aged between 18 and 20 inclusive.
- Young workers rate. This rate applies to workers aged under 18 but above the compulsory school age who are not apprentices.
- Apprenticeship rate. This rate applies to apprentices under 19 years of age or those aged 19 and over but in the first year of their apprenticeship.
Click here to view the table
If an employer provides a worker with free accommodation, some of its value can be counted towards NMW pay. This is the "accommodation offset". An employer cannot offset more than the accommodation offset limit.
What about the National Living Wage?
From April 2016, there will be a new rate for workers aged 25 and over, known as the national living wage. This should not be confused with the Living Wage set by the Living Wage Foundation, a campaigning organisation which promotes a voluntary minimum hourly rate of pay calculated according to the basic cost of living.
What will be the rate of the National Living Wage?
£7.20 per hour for those employees aged 25 or over from April 2016. This was announced by the Chancellor in his July budget. Visit the Gov.UK website here to read more.